Vietnam Daily Market Recap October 22, 2024: TCB, NLG Earnings Flashes & ACB Update.pdf

Daily commentary – October 22, 2024: Stocks sell off late, led by banks, telecom

The VN-Index traded mostly sideways on Tuesday until the final hour of trading in the afternoon when stocks dropped sharply to close down 0.8% to 1,269.89. The sharp decline was likely driven by a combination of factors, including disappointment over the market’s inability to break through the 1,300-point resistance level, mixed 3Q business results, and difficulties in profiting from short-term T+ trades. The HNX Index fell 0.9% to 225.50.

The Banking (-0.9%) and Telecommunications (-1.5%) sectors led the market lower.

Vingroup trio of tickers, which recently have been key market pillars, took a breather. Meanwhile, there was a limited rotation toward mid-cap stocks, particularly residential property stocks like DXG, HDC, and PDR. However, this rotation was not widespread, and the broader market remained under pressure as blue-chip stocks weighed on the index.

The weakening VND, down 3.2% month-to-date, added to market concerns. On the positive side, property stocks saw an impressive performance today. This was driven by news that the adjusted land price framework list in HCMC will take effect from October 31, 2024. This has positively impacted market sentiment, as the adjusted land prices will be used as a basis for calculating compensation and determining land prices for landowners and developers for project development, thereby shortening the time required for land clearance. This is expected to help the supply of property in HCMC recover in the near future. Supply in the HCMC area in 9M24 dropped by more than 75% YoY to less than 2,000 products. The residential property stocks that performed well today include HDC (+3.8%) and PDR (+1.5%).

MWG initially popped higher after being announced as a new member of the VN Diamond Index. However, the stock gave up some of its gains, and closed up 0.8%.

VHM (+0.9%), EIB (+3.8%) and MWG (+0.8%) were the few pillars that provided some support, adding 1.1 pts to the main index. On the other hand, GVR (-4.1%), BID (-1.8%) and FPT (-1.8%) were top laggards, together taking away 3.6 pts.

Read the full report: HERE